Jittery global markets weigh on Indian stocks

MUMBAI: Indian investors were at a complete loss on Thursday with all the three major markets -- stocks, gold and rupee ��� taking a drubbing due to the bearish sentiment across global markets. In stocks, traders unwound positions across the board, with the oil & gas and power sectors being the hardest hit.

Bombay Stock Exchange's Sensex settled at 14,324.29, down 338.32 points or 2.31 per cent. The index slumped to an intra-day low of 14,265.38 after opening at 14,557.33.

National Stock Exchange's Nifty ended 2.55 per cent or 112.3 points lower at 4287.95. The index swung between a high of 4399.30 and low of 4272.75.

Midcaps and smallcaps also faced the brunt of the bear onslaught. The BSE Midcap and Smallcap indices were down 1.08 per cent and 1.12 per cent, respectively.

Gold, which is widely considered an all-weather investment option, fell by more than Rs 200 per 10 gram tracking the movement in international markets, while the rupee slipped below the 45-per-dollar mark to its lowest level in 22 months on dollar's gaining strength overseas.

Outsourcing companies such as Infosys Technologies and Tata Consultancy Services fell as the financial sector turmoil in the US, their biggest market, rattled traders who saw little comfort from the rupee's slide. Experts warned that falling rupee value might augur well for exports from the country, but it was likely to fuel inflation.

Investors would be watching weekly inflation later in the day, which is expected to have eased for the third consecutive week to 11.96 per cent on Aug 30 from 12.34 per cent a week earlier.

Industrial output in July probably rose 6.5 per cent from a year earlier, more than in recent months but still consistent with a slowing economy as high inflation and interest rates bite. The data is due Friday.